A COMPREHENSIVE STUDY OF THE ADVANTAGES OF SIDE-BY SIDE (TOUCH FREE & FRICTION) CAR WASH OPERATIONS.

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Presentation transcript:

A COMPREHENSIVE STUDY OF THE ADVANTAGES OF SIDE-BY SIDE (TOUCH FREE & FRICTION) CAR WASH OPERATIONS.

My salesman tells me I should have a Touch Free AND Friction automatic at my location. Why would anyone need to have both types of automatics at one location? HERE’S WHY!

Case Study #1 ANDERSON FOOD SHOPS Omaha, NE

ANDERSON FOOD SHOPS US 2001SOFTGLOSS XS OPEN FOR BUSINESS - JULY, 2000

US 2001 SOFTGLOSS XS AVERAGE YEARLY WASH COUNTS 20,640 48% 22,668 52%

AVERAGE WASH PRICE FOR BOTH TYPES OF AUTOMATIC = $6.00

OPERATING A TOUCH FREE ONLY WASH WOULD RESULT IN AN ESTIMATED ANNUAL REVENUE LOSS OF $136,008* *Based on Average Wash Price

OPERATING A FRICTION ONLY WASH WOULD RESULT IN AN ESTIMATED ANNUAL REVENUE LOSS OF $123,840* *Based on Average Wash Price

BY OPERATING BOTH TYPES OF WASHES ESTIMATED ANNUAL GROSS REVENUE FOR ANDERSON FOOD SHOP $259,848* *Based on Average Wash Price

TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS 158,676 $6.00 $952,056 ($27,974) 144,480 $6.00 $866,880 ($61,346) LESS UTILITIES LESS MAINTENANCE LESS UTILITIES LESS MAINTENANCE ($28,638) ($63,840) ($38,563) ($70,560) FRICTIONTOUCH FREE 7 YEAR $831,604 $696,411ESTIMATED GROSS PROFIT 7 YEAR PROFORMA FOR ANDERSON FOOD SHOPS** **See Disclaimer

ESTIMATED TOTAL GROSS PROFIT $1,528,015* *before amortization of building, equipment, taxes and other expenses.

Case Study #2 WATER WORKS CAR WASH Louisville, KY

WATER WORKS OPEN FOR BUSINESS - JULY, 2000 US 2001SOFTGLOSS XS

US 2001 SOFTGLOSS XS AVERAGE YEARLY WASH COUNTS 20,316 48% 22,008 52%

AVERAGE WASH PRICE FOR BOTH TYPES OF AUTOMATIC = $6.00

OPERATING A TOUCH FREE ONLY WASH WOULD RESULT IN AN ESTIMATED ANNUAL REVENUE LOSS OF $132,048* *Based on Average Wash Price

OPERATING A FRICTION ONLY WASH WOULD RESULT IN AN ESTIMATED ANNUAL REVENUE LOSS OF $121,896* *Based on Average Wash Price

BY OPERATING BOTH TYPES OF WASHES ESTIMATED ANNUAL GROSS REVENUE FOR WATER WORKS $253,944* *Based on Average Wash Price

TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS 154,056 $6.00 $924,336 ($27,160) 142,212 $6.00 $853,272 ($60,383) LESS UTILITIES LESS MAINTENANCE LESS UTILITIES LESS MAINTENANCE ($24,969) ($63,840) ($37,958) ($70,560) FRICTIONTOUCH FREE 7 YEAR $808,367 $684,371ESTIMATED GROSS PROFIT 7 YEAR PROFORMA FOR WATER WORKS** **See Disclaimer

ESTIMATED TOTAL GROSS PROFIT $1,492,738* *before amortization of building, equipment, taxes and other expenses.

Case Study #3 USA Auto Wash Port Richey, Florida

USA AUTO WASH US 2001 OVERHEADSOFTGLOSS XS OPEN FOR BUSINESS - MAY, 2001

US 2001 OVERHEADSOFTGLOSS XS AVERAGE YEARLY WASH COUNTS 12,612 42% 17,640 58%

AVERAGE WASH PRICE FOR BOTH TYPES OF AUTOMATIC = $7.25

OPERATING A TOUCH FREE ONLY WASH WOULD RESULT IN AN ESTIMATED ANNUAL REVENUE LOSS OF $127,890* *Based on Average Wash Price

OPERATING A FRICTION ONLY WASH WOULD RESULT IN AN ESTIMATED ANNUAL REVENUE LOSS OF $91,437* *Based on Average Wash Price

BY OPERATING BOTH TYPES OF WASHES ESTIMATED ANNUAL GROSS REVENUE FOR USA AUTO WASH $219,327* *Based on Average Wash Price

TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS 123,480 $7.25 $895,230 ($21,769) 88,284 $7.25 $640,059 ($37,485) LESS UTILITIES LESS MAINTENANCE LESS UTILITIES LESS MAINTENANCE ($61,344) ($63,840) ($23,563) ($70,560) FRICTIONTOUCH FREE 7 YEAR $748,277 $508,451ESTIMATED GROSS PROFIT 7 YEAR PROFORMA FOR USA AUTO WASH** **See Disclaimer

ESTIMATED TOTAL GROSS PROFIT $1,256,728* *before amortization of building, equipment, taxes and other expenses.

Case Study #4 FOUNTAIN BLEU SHELL MIAMI, FL

FOUNTAIN BLEU SHELL MONARCH IISOFTGLOSS XS OPEN FOR BUSINESS - DECEMBER, 1998

MONARCH IISOFTGLOSS XS AVERAGE YEARLY WASH COUNTS 26,769 49% 27,999 51%

AVERAGE WASH PRICE FOR BOTH TYPES OF AUTOMATIC = $6.00

OPERATING A TOUCH FREE ONLY WASH WOULD RESULT IN AN ESTIMATED ANNUAL REVENUE LOSS OF $167,994* *Based on Average Wash Price

OPERATING A FRICTION ONLY WASH WOULD RESULT IN AN ESTIMATED ANNUAL REVENUE LOSS OF $160,614* *Based on Average Wash Price

BY OPERATING BOTH TYPES OF WASHES ESTIMATED ANNUAL GROSS REVENUE FOR FOUNTAIN BLEU SHELL $328,608* *Based on Average Wash Price

7 YEAR PROFORMA FOR FOUNTAIN BLEU SHELL** **See Disclaimer TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS 195,993 $6.00 $1,175,958 ($34,553) 187,383 $6.00 $1,124,298 ($79,562) LESS UTILITIES LESS MAINTENANCE LESS UTILITIES LESS MAINTENANCE ($35,373) ($63,840) ($50,014) ($70,560) FRICTIONTOUCH FREE 7 YEAR $1,042,192 $924,162 ESTIMATED GROSS PROFIT

ESTIMATED TOTAL GROSS PROFIT $1,966,354* *before amortization of building, equipment, taxes and other expenses.

Auto Spa Prospect, KY Citgo EZ Mart Sulpher, LA Open November 2000 Open December 1995 MORE EXAMPLES..... Deli Mart Iowa City, IA Open July, 1998

Auto Spa Prospect, KY Citgo EZ Mart Sulpher, LA Equipment US 2001 SoftGloss XS Equipment Monarch II Voyager VT Deli Mart Iowa City, IA Equipment US 2001 SoftGloss XS

Auto Spa Prospect, KY Citgo EZ Mart Sulpher, LA Touch Free 16,620 Friction 12,804 Touch Free 9,714 Friction 15,748 AVERAGE YEARLY WASH COUNTS Deli Mart Iowa City, IA Touch Free 14,588 Friction 9,231

Auto Spa Prospect, KY Citgo EZ Mart Sulpher, LA 29,42425,462 43% Friction 57% Touch Free 62% Friction 38% Touch Free AVERAGE ANNUAL TOTAL WASH COUNTS Deli Mart Iowa City, IA 23,819 39% Friction 61% Touch Free

7 YEAR PROFORMA FOR AUTO SPA** **See Disclaimer TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS 89,628 $6.50 $582,582 ($15,801) 116,340 $6.50 $756,210 ($49,397) LESS UTILITIES ($16,176)($31,051) FRICTIONTOUCH FREE 7 YEAR $486,765 $605,202ESTIMATED GROSS PROFIT LESS MAINTENANCE ($63,840) ($70,560)

ESTIMATED TOTAL GROSS PROFIT $1,091,967* *before amortization of building, equipment, taxes and other expenses.

7 YEAR PROFORMA FOR DELI MART** **See Disclaimer TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS 64,617 $7.00 $452,319 ($11,391) 102,116 $7.00 $714,812 ($43,358) LESS UTILITIES LESS MAINTENANCE LESS UTILITIES LESS MAINTENANCE ($11,662) ($63,840) ($27,255) ($70,560) FRICTIONTOUCH FREE 7 YEAR $365,426 $573,639 ESTIMATED GROSS PROFIT

ESTIMATED TOTAL GROSS PROFIT $939,065* *before amortization of building, equipment, taxes and other expenses.

7 YEAR PROFORMA FOR CITGO EZ MART** **See Disclaimer TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS 110,236 $7.00 $771,652 ($19,434) 67,998 $7.00 $475,986 ($28,871) LESS UTILITIES LESS MAINTENANCE LESS UTILITIES LESS MAINTENANCE ($19,895) ($63,840) ($18,148) ($70,560) FRICTIONTOUCH FREE 7 YEAR $668,483 $358,407 ESTIMATED GROSS PROFIT

ESTIMATED TOTAL GROSS PROFIT $1,026,890* *before amortization of building, equipment, taxes and other expenses.

Squeaky Clean Carrollton, KY Open August 2001 MORE EXAMPLES..... Open January 2001 Markham Ent. Lansing, MI

Squeaky Clean Carrollton, KY Equipment US 2001 SoftGloss XS Markham Ent. Lansing, MI Equipment Monarch II Voyager VT

Squeaky Clean Carrollton, KY Touch Free 9,348 Friction 8,082 AVERAGE YEARLY WASH COUNTS Markham Ent. Lansing, MI Touch Free 29,353 Friction 53,857

Squeaky Clean Carrollton, KY 17,430 46% Friction 54% Touch Free AVERAGE ANNUAL TOTAL WASH COUNTS Markham Ent. Lansing, MI 83,210 65% Friction 35% Touch Free

7 YEAR PROFORMA FOR SQUEAKY CLEAN** **See Disclaimer TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS 56,574 $6.00 $339,444 ($9,973) 65,436 $6.00 $392,616 ($27,784) LESS UTILITIES LESS MAINTENANCE LESS UTILITIES LESS MAINTENANCE ($10,210) ($63,840) ($17,465) ($70,560) FRICTIONTOUCH FREE 7 YEAR $255,421 $276,807ESTIMATED GROSS PROFIT

ESTIMATED TOTAL GROSS PROFIT $532,228* *before amortization of building, equipment, taxes and other expenses.

7 YEAR PROFORMA FOR MARKHAM - LANSING** **See Disclaimer TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS TOTAL WASH COUNT AVERAGE MENU PRICE GROSS SALES LESS CHEMICALS 376,999 $7.00 $2,638,993 ($66,464) 205,471 $7.00 $1,438,297 ($87,242) LESS UTILITIES LESS MAINTENANCE LESS UTILITIES LESS MAINTENANCE ($68,043) ($63,840) ($54,842) ($70560) FRICTIONTOUCH FREE 7 YEAR $2,440,646 $1,225,653ESTIMATED GROSS PROFIT

ESTIMATED TOTAL GROSS PROFIT $3,666,299* *before amortization of building, equipment, taxes and other expenses.

OVERALL AVERAGE ANNUAL TOTALS 9 LOCATIONS 440,777 TOTAL WASHES 242,957 FRICTION WASHES 54% 197,820 TOUCH FREE WASHES 46%

CONCLUSIONS BY OPERATING BOTH TYPES OF AUTOMATICS YOUR CAR WASH BUSINESS HAS THE POTENTIAL TO DOUBLE THE INCOME YOU WOULD HAVE REALIZED BY OPERATING ONLY ONE TYPE. IN ADDITION BECAUSE YOUR SITE HAS FRICTION AND TOUCH FREE AUTOMATICS, CUSTOMERS WILL HAVE NO NEED TO VISIT COMPETITIVE SITES WHICH OFFER A WASH TYPE YOU DON’T HAVE.

THANK YOU